Adoption of hybrid methodologies increased from 20% in 2020 to 31.5% in 2023.
While we’re seeing agile methodologies grow in popularity, the more traditional waterfall project management methodology hasn’t fallen by the wayside just yet—even though agile yields a 64% success rate, compared to waterfall’s 49% success rate, according to research.
In fact, it’s not necessarily a case of agile vs. waterfall. A hybrid approach in your PMO could be the answer.
With the PMO under increasing pressure to produce and meet goals efficiently and effectively, leaders and portfolio managers must embrace hybrid delivery environments by offering a strategic and practical approach to managing multiple methodologies at scale. The hybrid model transforms how the PMO delivers real change.
Discover how PMOs can support both Agile and Waterfall methodologies across the portfolio. Learn how hybrid PMOs maintain visibility, control, and alignment.
Agile: A Brief Overview
Introduced in the 1990s, the agile approach sought to introduce flexibility into the software development lifecycle, ensuring teams could incorporate feedback early and often, and adapt to changing requirements quickly and effectively. In 2001, the Agile Alliance established 12 principles governing the philosophy.
Today, agile is applied to projects of all types, not just software development, from marketing campaigns to research and development. Large corporations such as Apple, Procter & Gamble, and Netflix use agile. Unlike traditional approaches, it is a non-linear methodology that breaks down projects into smaller components.
With agile, you keep iterating and adjusting based on stakeholder feedback. The project is the responsibility of every team member, as is quality assurance. That means it requires close collaboration and communication.
Agile centers around the concept of continuous improvement. Teams don’t wait to address problems. Instead, changes are incremental, and you’ll see benefits throughout the cycle. It’s an adaptable model.
Still, agile does have some drawbacks. For example, it’s less predictable than traditional models. It also demands strong collaboration; if this is lacking, it may fail. Moreover, the focus is on quick releases. This can be difficult for companies with rigorous vetting processes or strict guidelines.
Waterfall: A Brief Overview
Originally applied to manufacturing and construction, Waterfall is a more traditional approach to project management, introduced in 1970. Many industries had relied on similar approaches previously. The straightforward methodology depends on teams outlining every aspect of the project in a linear, logical, and sequential manner.
Despite the movement toward agile, some businesses still rely on waterfall, particularly those with strictly defined requirements that demand careful planning. Today, companies like NASA and Boeing follow the waterfall methodology for its predictability and need for extensive documentation. Organizations in sectors like healthcare, manufacturing, supply chain management, and construction also frequently rely on the methodology.
Waterfall follows a series of steps, where each phase must be completed before the next one begins. You cannot backtrack to previous stages without starting over completely, and there is very little customer interaction until the final steps of the project. At every stage, there is detailed documentation.
Waterfall follows five stages:
1. Requirements gathering.
2. Design.
3. Implementation or development.
4. Verification or testing.
5. Deployment.
6. Maintenance.
While waterfall works well with projects with carefully defined requirements and strict deadlines, it’s less beneficial for projects that need a fast turnaround, stakeholder feedback, and flexibility.
What Is a Hybrid PMO?
Some projects and companies, such as Google, don’t rely on one specific methodology. Instead, they use a combination of multiple, such as agile and waterfall, applying the strengths of each.
For example, one company might develop software and produce hardware, using agile for software components and waterfall for hardware. Or, a software development team uses agile for the front-end and waterfall of the back-end. You could even utilize a hybrid approach for the same project, applying waterfall to structure the project but using agile for various phases.
So, what is a hybrid PMO, and why is it becoming more common?
A hybrid PMO is equipped for managing agile and waterfall together. But it goes beyond simply accommodating both methods. Through the hybrid approach, PMOs:
- Customize models to the specific context and project needs.
- Enable governance in various conditions and at different speeds.
- Ensure flexibility.
- Deliver greater value.
- Cultivate cultures of collaboration and continuous feedback.
- Optimize resource management.
The hybrid PMO doesn’t just track processes; it facilitates greater value. That means, for example, tracking both agile and traditional metrics. Reporting evaluates dimensions ranging from resource utilization to agility.
Hybrid approaches often use a range of tools, or a single platform that accommodates multiple approaches, such as Prism PPM. Roles are clearly defined, and there is a greater focus on delivering real-time feedback.
Challenges of Managing Agile and Waterfall Together
What are the main challenges when managing agile and waterfall together? Some of the obstacles you may encounter include:
- The PMO is too rigid for Agile teams and too loose for traditional ones.
- Executives want one view, but the delivery models don’t line up.
- It’s difficult to scale governance without slowing teams down.
- You need consistency without killing flexibility.
- There is resistance to change.
- There is a lack of visibility.
- You’re grappling with resource constraints.
- There is confusion when multiple approaches are involved.
- There is misalignment on projects and goals.
Fortunately, a PPM approach governed by a hybrid PMO can help address these challenges.
Why Adopt a Hybrid Approach?
A hybrid approach is the best route for diverse organizations across industries. Whether your focus is collaboration or your project includes several different components and teams with various styles of working, it’s an ideal project management approach.
Hybrid is also beneficial if your organization is easing into an agile approach and blending the two to facilitate a smoother transition. It offers greater flexibility when no single project management approach works for all your initiatives.
Or, perhaps risk management is a priority. Resources are being stretched too thin (or are under-utilized), and you need a better way to manage your resources effectively. Perhaps you’re seeking a more flexible leadership style.
Finally, hybrid is a strong methodology if you need to achieve better alignment with your overall business strategy, and scalability is necessary now or will become necessary in the future.
How to Run or Support a Hybrid PMO
How can you facilitate waterfall-agile project portfolio management and support a hybrid PMO? Follow these general guidelines, adapting them to fit the needs of your particular project and business.
Start by evaluating the overall goals.
Take stock of your business goals and the current state of project management at your organization. What’s working? Where are there gaps? Examine the various delivery models to determine the best fit or combination for your needs.
Train your team members.
Educate your teams on the various project management methodologies and philosophies you will be implementing. Everyone involved needs to understand each approach.
Evaluate individual project needs.
Assess the complexity, objectives, and requirements. Determine which methodology or methodologies work best on a case-by-case basis. Establish clear roles and responsibilities.
Use tools to automate and streamline your processes.
Choose a platform that accommodates multiple methodologies, such as Prism PPM.
Monitor objectives and progress and track KPIs.
Solicit feedback from all stakeholders and team members, and adjust the parameters as needed. Remember: The hybrid PMO is about flexibility. You should seek out, rather than fear, improvements.
PMO Governance for Hybrid Delivery: Best Practices
What does effective governance look like in a hybrid model? How can PMOs offer support and oversight without enforcing uniformity? Follow these principles.
Centralize people in your approach.
People are your most important resources. They should be well-equipped with the necessary skills and tools to utilize each philosophy successfully. Take an agile approach, listen to their feedback and adapt accordingly.
Govern the process.
As one study notes, “It is the project manager’s knowledge and responsibility to adapt combined methods, depending on the project type and its special characteristics.” The PMO and the project or portfolio manager is responsible for executing the project.
Tailor your approach.
There is no one-size-fits-all approach in a hybrid PMO. You will need to adapt your methods and utilize agile principles.
Don’t be afraid to use technology.
PPM platforms, like Prism PPM, will help you manage hybrid methodologies. Be flexible in your tool selection, combining tools as needed. Using a blend of PPM tools for hybrid PMOs ensures that you stay adaptable.
Focus on value.
Hybrid PMOs are not rigid in process. Instead, they’re about delivering value. That also involves ensuring continuous improvement, where you’re always refining.
Establish KPIs.
Use metrics to measure and improve project performance. We’ll look at the importance of KPIs and metrics more closely below.
Metrics and KPIs
What metrics and KPIs still matter regardless of methodology? Project portfolio management for hybrid environments still demands these metrics to ensure that you’re delivering value and improving processes. Use a range of metrics and KPIs to track and evaluate project performance and success. They allow you to assess and refine your processes. A PPM tool like Prism PPM enables you to track KPIs.
Examples of KPIs to track include:
- Project Success Rate
- Resource Allocation
- Project Effort and Churn
- Projects Aligned with Objectives.
- Budget Variance
- Customer Satisfaction Rate
- Return on Investment
Conclusion
Be flexible. Be curious. Be nimble.
These principles will allow you to ensure a more successful hybrid project management approach and build a PMO that suits your organization.
Prism PPM facilitates multiple methodologies and hybrid approaches, making your processes smoother and more efficient. Book a 30-minute consult or a 60-minute demo today.